Clty Taxi Service purchased a new auto to use as a taxl on January 1...
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Clty Taxi Service purchased a new auto to use as a taxl on January 1 , Year 1 , for $28,100. In addition, City pald sales tax and title fees of $540 for the vehicle. The taxl is expected to have a five-year life and a salvage value of $5,250. Required a. Using the straight-line method, compute the depreclation expense for Year 1 and Year 2. b \& c. Assume that the taxI was sold on January 1, Year 3, for \$22,177. Prepare the general Journal entrles to record the Year 1 depreclation and sale of the taxi In Year 3. Complete this question by entering your answers in the tabs below. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.)
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Clty Taxi Service purchased a new auto to use as a taxl on January 1 , Year 1 , for $28,100. In addition, City pald sales tax and title fees of $540 for the vehicle. The taxl is expected to have a five-year life and a salvage value of $5,250. Required a. Using the straight-line method, compute the depreclation expense for Year 1 and Year 2. b \& c. Assume that the taxI was sold on January 1, Year 3, for \$22,177. Prepare the general Journal entrles to record the Year 1 depreclation and sale of the taxi In Year 3. Complete this question by entering your answers in the tabs below. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) 